Binance Delists Centra after Fraud Charge against Founders

Centra Tech’s two co-founders were arrested by the US criminal authorities on Monday.

by Coins.Online
05 April • 3 min
In Markets

Binance, the world’s largest cryptocurrency exchange by volume, said on Thursday it has decided to delist the Centra token (CTR) from its platform after the US Securities and Exchange Commission (SEC) on Monday charged with fraud the two co-founders of the Florida-based startup.

“After proactively reaching out to the Centra Tech team to address our concerns and conducting thorough reviews of our findings, we have decided to delist the CTR token and the CTR/BTC, CTR/ETH trading pairs from the Binance exchange,” the Chinese crypto market said in a statement.

CTR will be removed from the crypto trading platform on April 8 at 05:00 UTC, while withdrawals of CTR tokens from Binance will be supported until 05:00 UTC on May 5.

a man, typing sentence with computer

 

Centra was listed on seven other exchanges, where it could be traded for Bitcoin (BTC), Ether (ETH), Tether (USDT), and even for US dollars at Livecoin.Hong Kong-based crypto exchange OKEx closed all CTR trading pairs on Tuesday, saying the withdrawal service of CTR would be available until further notice.

 

Gate.io also suspended CTR trading on Tuesday.

Also on Tuesday, KuCoin closed deposits for CTR, saying it would monitor the developments and take appropriate actions including delisting the token.

Centra Tech raised USD 32 million through an Initial Coin Offering (ICO) in September 2017, promising to create a “world connected to cryptocurrencies”. But SEC marked as deceitful its promise for a debit card backed by Visa and MasterCard that would allow users to instantly convert digital coins into fiat, claiming that Centra had no relationships with neither of the payment service providers.

black screens with different numbers

 

CTR shed some 85% of its value after SEC’s announcement to a low of USD 0.05 on Wednesday but has regained part of it since.

Among the largest exchanges, Binance is known as the one that lists most of the new altcoins, providing higher liquidity and attracting more traders. The exchange had to move out from China last year due to the regulatory cryptocurrency trading ban in the country. It is now based in Hong Kong and has its servers in Japan, but has been cautioned by the regulators in both countries that it might be shut. Meanwhile, Binance found political support in the small European island of Malta, where it plans to set up an office and hire up to 200 people in a few months.